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(Sharecast News) - Great Western Mining announced on Friday that it has raised 3.25m through an oversubscribed placing to accelerate exploration at its Defender-Pine Crow tungsten project in Nevada, following the confirmation of significant tungsten mineralisation.
The AIM- and Euronext Growth-listed explorer raised the funds at 1.4p per share, issuing 232.1 million new ordinary shares, with one warrant attached to each placing share exercisable at 2p over three years.
It said the placing price represented a discount of about 8.5% to the closing mid-market price on 29 January.
If all warrants were exercised, the company could raise a further 4.6m in gross proceeds.
Proceeds would be used primarily to fast-track drilling at the Defender-Pine Crow project in Mineral County, Nevada, after recent channel sampling returned up to 16 metres at 0.3% tungsten trioxide, including a higher-grade interval of two metres at 0.66%.
Great Western said it had submitted a notice of intent to drill to the US Bureau of Land Management and added that the funding would allow it to mobilise for drilling at the earliest opportunity, alongside geophysical and gravity surveys, with the aim of progressing towards a maiden mineral resource estimate.
Chairman Brian Hall said investor support reflected the strength of recent results at the project.
"We are very encouraged by strong investor support following the initial trenching results at our Defender-Pine Crow tungsten project, which exceeded our expectations and confirmed the potential of the system," he said.
"This funding places the company in a strong position to deliver meaningful progress during the upcoming drilling season, while continuing to advance our wider Nevada portfolio."
Great Western said it continued to make progress across its broader multi-commodity portfolio within the Walker Lane Trend, including follow-up work at its West Huntoon project, where recent drilling has confirmed gold and silver mineralisation, and further geological and geophysical evaluation at the Rhyolite Dome target within its Olympic Gold Project.
Admission of the placing shares was expected in two tranches on 13 February and 27 February.
Following admission, the company's issued share capital would comprise 411.8 million ordinary shares, with all placing shares ranking pari passu with existing shares.
At 1133 GMT, shares in Great Western Mining Corporation were down 3.92% at 1.45p.
Reporting by Josh White for Sharecast.com.